Egypt - Misr Italia Properties, a leading real estate developer in Egypt, has announced that it will launch a new phase of its flagship project IL BOSCO City in October 2023. The project is located in the 6th of October City, a satellite city of Cairo.
The company’s CEO and Managing Director, Mohamed Khaled Elassal, revealed the news in an interview with Daily News Egypt. He also said that the company is delivering the first phase of its Kai Sokhna project, a coastal resort on the Red Sea, which has completed all the amenities and services for the residents. He added that the company is committed to finishing the construction works for its projects on time.
Elassal stated that Misr Italia Properties will participate strongly in the Cityscape Egypt exhibition, the largest real estate event in the country, from 20 to 23 September 2023. The company will showcase a diverse portfolio of its projects in different regions, including:
- IL BOSCO New Capital: The first project in the New Administrative Capital (NAC), which was delivered ahead of schedule in 2020. The project features IL Bosco Javelin Sports Club, the first sports club to open its doors in the NAC.
- Vinci: A unique project in the NAC that includes several distinct neighborhoods, such as the government district. The project also offers Vinci Lagoons, the first swimmable lakes in the NAC, and Vinci Mall, the first upscale commercial center in the NAC.
- Cairo Business Park: A project that comprises administrative offices, as well as the first innovation and entrepreneurship center in east Cairo.
- Kai Sokhna and Solaré Ras El Hikma: Two coastal projects on the Red Sea and the North Coast respectively. The latter is a newly launched project that promises to deliver an Italian coastal experience in Ras El Hekma.
The company targets EGP 11bn in sales during 2023
Elassal also said that Misr Italia aims to achieve EGP 11bn in sales during 2023 and to become one of the top three developers in terms of profits, sales, and deliveries. He reported that the company has achieved sales worth EGP 7.2bn during the first six months of 2023, compared to EGP 4.2bn during the same period of 2022, with a growth rate of 71%. He said that these sales are the highest with a rate exceeding 36% of the target. He further noted that more than 1,000 units under construction will be delivered this year in the IL BOSCO project and that the company is working on completing infrastructure works and construction works for the first phase of the Vinci compound in the NAC, which will begin delivery this year.
EGP 32bn investment injected in IL BOSCO
Elassal revealed that the company invested EGP 32bn in its flagship project IL BOSCO in Mostakbal City, East Cairo. The project is designed as a 15-minute city, where residents can access various services and amenities within a short walk or bike ride. The company has achieved sales of EGP 2.1bn in the first half of 2023.
The company also signed two contracts worth EGP 500m with GROUP Contractors and Al Andalus Construction to execute and complete the construction work in IL BOSCO City, IL BOSCO, and Vinci projects in the New Administrative Capital (NAC). The company has finished the excavation and leveling of the Sila phase of IL BOSCO City and completed the concrete work for 76 villas in the same area. The external finishing will start soon, and the delivery is expected in October 2024.
He said that the company aims to invest EGP 3.5bn in all of its projects in 2023 to meet its commitments to its clients. He added that the company owns a land bank of about 7.1 million sqm, which includes a variety of residential, coastal, commercial, and administrative projects. He revealed that the company is studying expansion opportunities in West Cairo and the Gulf region, especially Saudi Arabia.
He stated: “We are studying expansion in west Cairo and we are interested in the Gulf real estate market by heading to Saudi Arabia as an opportunity to present a group of our projects to international clients. The Kingdom of Saudi Arabia is a great place to start a business, in light of the economic and urban boom that the Kingdom is currently witnessing; in addition to incentives it provides to encourage investment.”
Misr Italia seeks financing solutions
Elassal also commented on the challenges that the real estate sector has faced in the past periods, such as the devaluation of the local currency, the Russian-Ukrainian war, and the increase in raw materials prices and bank interest rates. This led to an increase in price of properties by 10-15%.
He said that the company has a risk management department that monitors the situation and takes appropriate decisions to cope with any changes. He also said that the company is exploring different financing mechanisms, including bank loans and factoring, to develop and deliver its projects on time, revealing that his company is currently in negotiations to obtain a loan that may reach EGP 1.5bn.
“We have obtained financing for the Vinci and ILOSCO projects, and we are awaiting further financing for the ILOSCO City project. In addition, we have an agreement with EFG Hermes which completed advising on the second factoring of Misr Italia Properties at a value of EGP 986m,” Elassal concluded.
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